Rock Island Dam Powerhouse 2 Draft Tube Gate

Rock Island Dam Powerhouse #2 Draft Tube Gate Cylinder & Hydraulic Power Units Upgrade Application to use the Progressive D/B Delivery Method May 29, 2020 Presentation “To provide sustainable, reliable utility services that enhance the quality of life in Chelan County. ”

Agenda • • • Introductions Chelan County PUD The Project Budget Project Schedule Why Progressive Design-Build Qualifications Organization Chart Summary

Introductions

The Project Team – Here Today Chelan County Public Utility District No. 1 • John Sagerser, Rock Island EPM Manager • Devin Myers, Rock Island Project Manager • Katie Yount, Internal Legal Counsel Parametrix • Jim Dugan, D/B Program Advisor • Dan Cody, D/B Procurement & D/B PM/CM Support • Maggie Anderson, Project Controls Specialist

The Project Team: Other Team Members Chelan County Public Utilities District No. 1 • Steve Wright, General Manager • Justin Erickson, Managing Director - District Services • Chuck Boss, Construction Manager Perkins Coie • Graehm Wallace, D/B Legal Advisor Hydro Design Consultant • Jeff Erwin - Stantec Consulting

Chelan County PUD

The District Chelan County PUD was established in 1936 Second largest, non-federal, publicly owned hydro generation capacity in the U. S. 800 Employees 50, 000 Customers 3, 000 sq. mile service territory Approximately 2, 000 megawatts of generating capacity 35% of hydropower generated serves county residents, the remainder is sold through contracts and into the energy market. • Three Hydroelectric projects • • Lake Chelan Dam –Built in 1927 • Rock Island Dam – First Powerhouse built in 1933, Second Powerhouse built in 1979 • Rocky Reach Dam – Built in 1961 • Operate • Water/wastewater – approx. 5, 000 customers • Fiber & telecom – 13, 000 customers • Parks & recreation – 14 parks along the Columbia River and Lake Chelan

The Project

Rock Island Dam

Rock Island Dam • First Powerhouse built in 1933 • First Hydropower project on the Columbia River • Second Powerhouse built in 1979 • Last Hydropower project on the Columbia River • Eight (8) original turbine-generator units installed in Powerhouse #2 • Turbine-generators and associated Balance of Plant systems have exceeded their 40 -year useful life • Upgrading the Draft Tube Gate Cylinders and Hydraulic Power Units will ensure another 40 years of reliable/efficient operation • Upgrades will be phased to minimize disruption to power generation capability

Rock Island Dam Draft Tube Gate Cylinder & Hydraulic Power Units Upgrade • Removal of existing cylinders (16 total) and HPUs (8 total) including interconnecting piping (including field piping) and auxiliary systems. • Inspect, analyze and refurbish and/or replace cylinders and HPUs • Shop testing of hydraulic cylinders and HPU • Provide all electrical power & controls • Provide new environmentally friendly hydraulic fluid • Replace interconnecting piping (including field piping) and auxiliary systems. • Installation of cylinders, HPUs including piping and auxiliary systems • Provide labor, supervision, tooling, cranes and scaffolding for removal and installation • Assist in startup and commissioning of refurbished system • Scheduling to be coordinated with District generator outages

Rock Island Dam Powerhouse #2 Draft Tube Gate Cylinder & Hydraulic Power Units Upgrade Project Budget Category Budget $ 200, 000 Costs for Professional Services (A/E, Legal, etc. ) Cylinder Manufacturing/Refurbishment $ 2, 250, 000 HPU Manufacturing/Refurbishment $ 1, 800, 000 Auxiliary Systems and Piping $ 1, 250, 000 Installation construction costs (Inc. Manufacturing and Install) $ 1, 400, 000 $ 145, 000 District Administration and Project Management Total $ 7, 045, 000 Note: All design and construction costs identified above include 8. 3% sales tax, 5% owners project contingency and a combined 20% contingency for design, construction, escalation and inflation

Project Funding • Overall project scope, schedule and budget were presented as part of the Powerhouse Two Rehabilitation Program to District Board of Commissioners in November 2017 • Approved 2018 capital funds associated with the project • District currently plans to fund project with cash reserves until 2022 • District has not issued bonds for capital projects since 2009 • Average capital expenditure of $44 M between 2010 and 2017 using cash reserves • District’s current bond rating is AA+/Stable, one of the top five public utilities • Ability to fund project after 2022 using external debt is high

Rock Island Dam Powerhouse #2 Draft Tube Gate Cylinder & Hydraulic Power Units Upgrade D/B Schedule Project Schedule Estimated Date PRC Presentation May 29, 2020 Publication of RFQ for Design/Build Services June 2, 2020 Project Information Meeting (Date subject to change. ) June 11, 2020 RFQ Submittal Deadline Open & Review/Score Submittals Received Identify Finalists & Issue RFP & Proprietary Meeting Notifications Proprietary Meeting #1 July 9, 2020 July 9 -16, 2020 July 17, 2020 August 26 - September 2, 2020 Proprietary Meeting #2 (if required) September 18 -21, 2020 RFP Submittal Deadline (Proposals & Cost Factors) September 16 -23, 2020 Open & Review Proposals (Cost Factors not reviewed) Open Cost Factors & Score Proposals Design/Builder Interviews Notify Design/Builders of Scoring and Most-Qualified Design/Builder October 19 -23, 2020 October 24, 2020 October 29 -November 4, 2020 November 17, 2020

Rock Island Dam Powerhouse #2 Draft Tube Gate Cylinder & Hydraulic Power Units Upgrade D/B Schedule Project Schedule Design/Build Contract Negotiation Execute Design/Build Agreement with Preconstruction Phase/GMP Negotiation GMP Amendment Executed Manufacturing – First Unit and Unit Common Site Set-up and Mobilization Construction Phase Estimated Date November 25 -December 23, 2020 December 2020 -January 2021 February 2021 March 2021 – July 2021 – September 2021 – January 2029

Rock Island Dam Powerhouse #2 Draft Tube Gate Cylinder & Hydraulic Power Units Upgrade Project Development Schedules Critical Phasing

Why D/B Delivery Method for Rock Island Dam Powerhouse #2 Draft Tube Gate Cylinder & Hydraulic Power Units Upgrade Project

RCW 39. 10 D/B Statutory Compliance (5. 1) If the construction activities are highly specialized and a D/B approach is critical in developing the construction methodology • Rock Island Powerhouse 2 is part of the Bulk Electrical System which is considered critical infrastructure. • “Bulb” turbine-generator rare in the U. S. • Powerhouse 2 is an operating power plant. Phased construction required to minimize operational impacts on power generation • Limited access for removal and reinstallation • Work to refurbish DTG cylinders and HPUs is highly labor intensive, specialized and technical in nature • The Design Builder, performing the work must have the ability to design and manufacture as well as remove and reinstall the new components • Very tight clearances/tolerances required between operational and stationary components (5. 2) If the project provides opportunity for greater innovation and efficiencies between the designer and builder • The cylinders and HPUs requirements for this project can be designed in numerous ways • Proprietary design solution can be leveraged to achieve the technical requirements for this project • Design may vary based on specific condition and needs of each unit Owner does not have expertise to specify options for improvement to existing systems (5. 3) If significant savings in project delivery time would be realized • The refurbishment of the cylinders and HPUs will be done during unit outage. • It will be imperative that the contractor is involved in scheduling and phasing of the work. • Scheduling and installation innovation can reduce the outage time required

Public Body Qualifications

CCPUD Leadership Team • CCPUD has extensive construction experience including projects of similar scope and complexity • Long history of projects delivered using Design-Bid-Build or Negotiated Contract. • Long track record of building projects on-time and within budget. • CCPUD is relatively new to the Design Build method of project delivery • CCPUD is currently using Progressive Design-Build for RI PH 2 Generator and Turbine Rehabilitation • CCPUD is currently using GC/CM for two facilities projects. • CCPUD team members have attended the upcoming AGC Design-Build Workshop • CCPUD team members have attended and are registered to attend the upcoming DBIA Certification Workshop • Parametrix: Dan Cody D/B PM Support and Jim Dugan Internal D/B Advisor • Graehm Wallace, (Perkins Coie): External D/B Legal Counsel CCPUD satisfies the public body qualifications by staff augmentation with consultants.

Rock Island Dam Powerhouse #2 – Draft Tube Gate Cylinder & Hydraulic Power Units Upgrade Project Organizational Chart

Rock Island Dam Powerhouse #2 – Draft Tube Gate Cylinder & Hydraulic Power Units Upgrade Project Organizational Chart Project Team Member District Project Team John Sagerser – Program Manager Devin Myers – Project Manager Jeff Erwin (Stantec) – Project Engineer Chuck Boss – Construction Manager Katie Yount – Internal Legal Counsel Consultant Project Team Jim Dugan – D/B Consultant Dan Cody – D/B Procurement Mgr. Graham Wallace – External Legal Counsel Vik Negi (Stantec) – External Engineering Consultant Draft Tube Gate HPU and Cylinder Upgrade Project Procurement Construction & Design 10% Generator Main Lead Project Procurement Construction & Design 10% Other Duties 80% 15% 20% 60% 50% 0% 0% 50% 15% 35% 30% As Needed 25% 5% 25% 0% As Needed As Needed Chelan PUD Organizational Structure: The District is currently in the process of rehabilitating powerhouse two at Rock Island Dam. This project is a balance of plant project that will be executed as part of the full powerhouse rehabilitation project. Several of the project team members are participating in two DB projects being presented today. Through the DB procurement process, we will secure contracts with experienced teams of Contractors that will need limited support and oversight from the project team during the execution phase of this project. The District does, however have a deep bench including internal personnel in addition to Service Agreements for engineering and project administrative personnel if needed.

Project Team D/B Experience

Name Experience John Sagerser Rock Island EPM Manager Chelan County PUD 28 yrs. Electrical Engineering/Project Management Experience 17 yrs. Hydro Engineering/Project Management Experience Project Manager for Lake Chelan Hydro Modernization ($35 M 2006 to 2010) Project Manager for Rock Island Powerhouse 1 Rehabilitation (2015 to 2018) Devin Myers Rock Island Project Manager Chelan County PUD 17 yrs. Hydroelectric Industry Maintenance Planning/Project Management RI PH 2 Draft Tube Gate Refurbishment($4. 4 M 2016 to 2019) RI PH 2 Storage Building (Initiation through Bidding) ($3. 4 M 2016 -2017) RI PH 2 Oil Handling System($650 K 2016 to 2018) Chuck Boss Construction Manager Chelan County PUD 20 yrs. Industrial Engineering/Construction Management Experience 12 yrs. Hydro Construction Management/Quality Control Experience Construction Manager Rock Island Powerhouse 1 Rehabilitation QA/QC Representative Rock Island Powerhouse 1 Rehabilitation Construction Manager Rock Island Denil Installation/Removal Jim Dugan D/B Program Advisor Parametrix 40 yrs. Program/Project Management Projects: TPS – Boze Elementary School; TPS Hunt Middle School; Willapa Elementary School Gym; Multiple large D/B projects worldwide with The Austin Company Project Review Committee Member: 3 Year Term Ends June 2019

Name Experience Dan Cody D/B Procurement and PM Support Parametrix 30 yrs. Of Design & PM/CM 4 D/B Projects: South Puget Sound Community College – Lacey Campus; Building #1; Tacoma Public Schools – Boze Elementary School; Tacoma Public Schools – Hunt Middle School; Willapa Elementary School Gym Graehm Wallace Outside Legal Counsel Perkins Coie Graehm has prepared Design-Build contract documents under RCW 39. 10 for the Washington State School Directors Association, the Tacoma School District, and the Willapa Valley School District as well as Design-Build contract documents for dozens of private projects. Graehm has over twenty-two years legal counsel experience working in all areas of construction and has provided legal assistance to over 100 Washington public entities. His work has covered all aspects of contract drafting and negotiating. This includes preconstruction, architectural, engineering, construction-management, GC/CM, Design-Build and bidding. Graehm has also provided legal advice during construction, claim prosecution and defense work.

Summary • Project is funded with the appropriate budgets • Projects meet qualifying RCW criteria • Project Management Plan is developed and has clear and logical lines of authority • Project team has the necessary experience • Project team has the capacity • Project team is prepared and ready to proceed

Thank you